91997E4073

WRITTEN QUESTION E-4073/97 by Riccardo Nencini (PSE) to the Commission (14 January 1998)

Subject: Insurance

The Fondiaria insurance company is in the process of reorganizing its own networks as well as those of the Milano Assicurazioni, Polaris and Previdente companies. In the process, an unknown - but, undoubtedly, extremely large - number of direct and indirect jobs will be lost.

In addition to terminating agreements with agents, Fondiaria is sending clients policy termination notices, thus causing upset to the clients themselves and producing extensive disruption.

Does the Commission intend to ascertain whether the above action by Fondiaria violates antitrust legislation and consumer rights?

Answer given by Mr Van Miert on behalf of the Commission (9 March 1998)

On the basis of the information currently in its possession, the Commission believes that the restructuring of the Fondiaria group does not create a distortion of competition according to Articles 85 to 94 of the EC Treaty.

It is not possible to give an abstract answer to the question about consumer rights. While the general principle of pacta sunt servanda obviously applies, specific circumstances may allow for cancellation. Contractual clauses allowing for this might be considered unfair in the sense of Council Directive 93/13/EEC of 5 april 1993 on unfair terms in consumer contracts ((OJ L 95, 21.4.1993. )) but this cannot be established without close scrutiny. In any event it is not up to the Commission to examine whether companies comply with national measures implementing this Directive.